CHENNAI, India: Multinational cosmetics companies from Japan’s Shiseido to France’s L’Oreal are stepping up investments in India, viewing the country as one of the last untapped growth markets for premium beauty products.

A report from Kearney and distributor LUXASIA projects India’s luxury beauty market will surge fivefold to US$4 billion by 2035, from $800 million in 2023, fueled by young, affluent, and social media–savvy consumers with rising incomes. Currently, luxury accounts for just 4 percent of India’s $21 billion beauty and personal care sector, far below the share in Southeast Asia or developed markets such as China and the U.S.

“India is the last bastion of growth for premium beauty,” said Sameer Jindal of Houlihan Lokey. “The Indian consumer is willing to experiment and try out new things.”

Estee Lauder, which owns MAC and Clinique, has made India a priority emerging market. Country manager Rohan Vaziralli said the company is initially targeting 60 million women. “India today … is looked at as one of the priority emerging markets,” he said.

Consumers are already responding. Chennai homemaker R. Priyanka said she was delighted to find Estee Lauder’s Jo Malone London fragrance available locally. “It is easier than asking someone (abroad) to get it for you every time,” she said.

Global firms face limited competition from domestic players, with Forest Essentials and Kama Ayurveda among the few Indian luxury beauty brands. Together, they account for less than a tenth of luxury sales, compared with 40 percent of the local brand share in China, Japan, and South Korea.

To appeal to Indian shoppers, companies are tailoring products and strategies. Estee Lauder is analyzing online sales to expand into smaller cities, collaborating with designer Sabyasachi, and rolling out Kohl eyeliners. It has also invested in Forest Essentials and funds start-ups.

L’Oreal said this year it is investing more in India to meet the “elevated beauty desires” of young, digitally empowered women. South Korea’s Amorepacific is pushing K-beauty regimens with cleansers, serums, and sunscreens. Shiseido launched its NARS brand on Nykaa, India’s largest beauty retailer, and plans to expand further.

E-commerce players like Amazon are also leveraging the boom by bringing in more global brands, while retailers like Shoppers Stop aim to open up to 20 beauty stores annually to boost the segment’s share of revenue.

Nykaa co-founder Adwaita Nayar summed up the mood: “Global brands are very excited about India, where consumers are splurging more to stay on top of trends such as ‘cherry makeup.'”